Northwest Fur Co. started 2021 with $100,000 of merchandise inventory on hand. During 2021, $470,000 in merchandise was purchased on account with credit terms of 4/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,700. Merchandise with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

Multiple Choice

• $216,700.

• $211,900.

• $193,232.

• $193,292.